Transcript of "Power of One"

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The Power of One Enzo Mortgage Investment Fund Investor’s Guide FINANCIAL GROUP

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Your investments are not about what you can do with your money, but what your money can do for you.

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Thank you for your interest in the Enzo Mortgage Investment Fund. In this booklet you’ll be introduced to Enzo Financial Group and the Enzo Mortgage Investment Fund. We have a number of exciting and potentially highly profitable real estate transactions available now which are seeking mortgage financing. Your money will go to work for you immediately. In the months to come your earnings from our portfolio of mortgage investments will demonstrate our ability to make money for you. I look forward to sharing this success with you … and I look forward to hearing your stories about what this success has done for you! We live in the Land of Anything’s Possible and we grow up believing that we can accomplish anything in which we truly believe. Life is about possibilities. We at Enzo Financial Group look forward to helping you achieve your possibilities, whatever they may be. Our goal is to help hundreds of people reach their potential. When we achieve that, then we will enjoy success together. Diane Bender President Enzo Financial Group

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Enzo Mortgage Investment Fund (EMIF) is an open-ended mutual trust formed under the provisions of the Canadian Income Tax Act. We offer investors an entry point into the mortgage financing business and access to the stability and cash flow real estate financing offers. We raise capital by selling units to investors then lend that capital to qualified borrowers. Our investors earn quarterly cash returns. Enzo Financial Group (EFG) is the group of associated companies required to ensure the success of EMIF. EFG is based in Alberta, with Associates across Western Canada. Our team is made up of management professionals, expert mortgage underwriters, and senior developers, all of whom bring extensive knowledge and expertise to the table. What is the Enzo Mortgage Investment Fund? Our vision is to grow EFG as a Western Canadian based real estate financing company that provides superior returns to our investors. We will continue to build on the benefits of economies of scale that keep our overhead low and return to investors high. We manage our investors’ funds just as we would manage our own investments because our trustees, directors, officers, and specialists have a vested interest in EFG's success. We will meet our borrowers' needs through a thorough understanding of the commercial and residential real estate markets where we lend. As a result, we will provide quick and informed conditional approvals to assist our borrowers in successfully financing their real estate ventures and earn their repeat business for future projects.

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What have your investments done for you recently? Have you built your nest egg? Have you been able to live your life? With the ups and downs of the stock market and poorly paying GICs, have your savings taken you where you really want to go? Enzo Financial Group may provide the solution to the problem. Our Unitholders may earn substantial annual returns paid out in cash every three months, providing them with an alternative income stream they can enjoy … now. We generate income for our Unitholders through our conservative lending strategy, strict guidelines, and diversified portfolio of mortgages. Our Unitholders appreciate how our consistent returns and quarterly cash payments help their money go further. Live your life. Living a life without limits is the highest state of existence. ~ Lieh Tzu

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Four easy steps. 1 2 We like to keep things simple. Investing with us is straight forward and not intimidating. Invest Invest in EMIF. Your money goes into a pool of funds with other EMIF Unitholders. Choose Choose how many units you want to purchase. Each initial investment will be for a minimum of $500. Investments in EMIF are RRSP and TFSA eligible. 4 3 Watch Watch your money go to work. Pooled money is made available to qualified borrowers at rates that are both fair to the borrower and profitable for us. Reap Reap the rewards of your investment. After the end of the quarter in which you’ve invested, you’ll receive your first cheque. Other distribution cheques will be mailed every three months thereafter.

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Safety Mortgages are structured to minimize risk by limiting loans to a 65% loan-to-value ratio. Risk is greatly minimized when there is sufficient equity remaining above all financing placed on the collateral property. Diversification Investments are made in many different mortgages on many different properties in many different locations. quarterly Payments & Statement Distribution Cheques are mailed quarterly with a Statement of Account showing current and year-to-date activity. Low Volatility Mortgage investing is safe, predictable and dependable since the value of the mortgage and the interest received is fixed and not subject to wild market swings. Minimum Investment The minimum investment is $500 and there is no maximum. Investment may be increased at any time by any amount. Protection for your money. No Hold - No Float The investment begins earning interest the first business day of the month following receipt of the paperwork and cheque. Investor Communications Investors receive a quarterly newsletter reporting interesting news and a calculation of the annualized return on investment. Quarterly and annual reports detail the Fund’s financial condition and investment activities for the period. Investment Vehicles Other than Cash Self-directed traditional RRSPs and TFSAs are able to invest. Experienced Management and Track Record The management team has a broad range of construction, finance, lending, and investor relations experience spanning over thirty years of real estate investing.

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The main difference between those who have achieved financial freedom and those who have not is their ability to take action. About the mortgage lending business. Why would anyone pay an interest rate that is higher than conventional rates when they can go to a bank for a lower rate? (1) Banks take too much time to commit to a loan. (2) The loan sought is not the type of loan typically made by a bank. Quick Loans Cost More Time is a consideration. Banks and their government regulators have created rules, policies, and ratios that make lending on real property difficult and slow. Common sense and customer service are not always pervasive in the lending industry. To developers, time is money. Missed engineering and construction deadlines can jeopardize an entire project. EFG can usually make a loan in a week or two, or even in a few days if necessary, rather than the months it often takes through a bank. This speedy process is attractive to a borrower who is willing to pay a premium through higher interest rates.

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Mortgage strategy. Each loan that is added to the pool of mortgages meets the necessary guidelines designed to mitigate as much risk as possible, while maintaining high yields. <ul><li>Equity </li></ul><ul><li>Sufficient equity in collateral property. </li></ul><ul><li>Loan-to-value is limited to 65% of the property’s value. </li></ul><ul><li>Independent appraisals confirm value. </li></ul><ul><li>Collateral is land having a large equity cushion and upside potential. </li></ul>Short Term Loans are short term, ranging from 6 to 30 months. <ul><li>In Our Own Back Yard </li></ul><ul><li>We will focus in market segments primarily in Alberta and British Columbia: </li></ul><ul><li>Development mortgages, including land acquisition, pre-development and infrastructure mortgages. </li></ul><ul><li>Construction mortgages for the construction of multi-family residential or commercial developments. </li></ul><ul><li>Term financing mortgages allowing the owner of completed or substantially completed revenue property to defer arranging long term financing until conditions are favourable. </li></ul>Experience We are very careful about who we lend to and what we lend for. We deal with highly experienced real estate entrepreneurs who have proven abilities to locate and add value to properties. We rely on our own expertise in finance, mortgaging, and development and apply rigorous lending criteria to every potential investment opportunity.

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A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life. ~ Suze Orman Is an EFG investment RRSP/TFSA eligible? Yes. You will need to have a self-directed plan. Can you re-invest my quarterly cash payments automatically? Yes. While we prefer our Unitholders to experience the income potential of having quarterly cash distributions, you can elect to reinvest your quarterly earnings. And, if you wish to add to your principal, you can do so at any time. Aren’t mortgages risky? Yes. There is inherent risk in any investment. We manage risk by (1) lending only to borrowers who qualify with our lending criteria, and (2) through our highly diversified portfolio of mortgages. We issue short-term loans where there are low loan-to-value ratios and where the projects have a high degree of success potential. Why has my Investment Advisor never heard of the Enzo Mortgage Investment Fund? Investment advisors usually recommend only certain types of investments approved by the large, traditional financial institutions that are generally not friendly to small businesses and developers. Increasingly, financial markets are being controlled by big Eastern finance companies not in tune with Western needs. Investment Advisors may also be influenced by sales goals and commission structures, or just not be aware of a particular option. At EFG, we focus on people who want to invest directly and we strive to avoid the high overheads associated with working through the various networks of financial advisors. We prefer the more personalized long-term relationships this lets us establish. Questions & Answers

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Find out what an investment in the Enzo Mortgage Investment Fund can do for you. Enzo Financial Group 1-403-601-6931 www.enzofinancial.com FINANCIAL GROUP